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News Release

Dublin

Retail sector continues to show signs of improvement

Sentiment in the retail sector has improved in the last 6 months, with an increase in demand in both occupier and investment markets.


​We are delighted to announce the release of JLL’s latest Retail Market Report for Q1 2014.

Hannah Dwyer, Head of Research at JLL said that “sentiment in the retail sector has improved in the last 6 months, with an increase in demand in both occupier and investment markets. Occupier demand remains focused on prime Dublin high streets and strong-performing shopping centre schemes, and there are now limited vacancies in these locations. As supply tightens, there has been evidence of some rental increases from recent lettings, particularly on Grafton Street which had a number of high-profile deals in the latter part of 2013 and more recently, the signing of Space NK on the former Body Shop unit. Availability on Grafton Street is tightening, with just 2 units vacant (2.2% vacancy rate). There is now limited occupier choice on Grafton Street, which has caused increased competition for units that come onto the market. Rents vary significantly by unit, even within the same scheme and depend on the level of fit out, fit-out quality, covenant strength and unit location. Prime rents on Grafton Street have increased by approximately 10% this quarter to €350 - €460 per sq.ft..”

Recent Grafton Street lettings include:
• Ecco is to occupy the former Korky’s store (47 Grafton Street)
• Space NK is moving into the former Body Shop unit, 82 Grafton Street 
• The Body Shop has now occupied and opened at 11 Grafton Street, in the unit next to McDonalds
• Levi’s has leased the former Monsoon unit, 38 Grafton Street

Hannah added that: “The outlook for 2014 is a lot more stable than it has been for the last few years. Prime units are likely to remain the focus of demand, and as a result will continue to show greatest stability and recovery. Tightening supply on prime high streets and prime schemes is likely to cause further rental growth in the next 12 months”.